If you look at a chart of copper futures compared to the S&P 500 index, it is immediately evident that there is a strong longer-term comparison between these assets. Actually, that makes perfect sense, as both copper and equities are considered "risk-on" assets.

However, over shorter time periods, we may see sharp divergences that can be explained by copper's pronounced link to the Chinese economy.

Indeed, over the last week, there has been a significant divergence, as equities have outperformed copper despite strong Chinese economic data that should normally be good for copper. I would expect price convergence to happen soon, and I believe it will be driven by rising copper prices, as opposed to a drop in equities.